Applications for jobless benefits fell 9,000 to 363,000 in
the week ended Oct. 27, the fewest in three weeks, the Labor
Department reported today in Washington. Economists forecast
370,000 claims, according to the median estimate in a Bloomberg
survey. Data for New Jersey and the District of Columbia were
estimated because those offices were closed due to Hurricane
Sandy, a spokesman said as the figures were released.

Fewer firings may mean companies are poised to boost hiring
should the economy avert damage from the package of tax
increases and spending cuts that will take effect next year if
lawmakers fail to act. A Labor Department report tomorrow may
show employers took on 125,000 workers in October, not enough to
keep the jobless rate from rising to 7.9 percent from 7.8
percent, according to the Bloomberg survey median.

“Claims have been on a mildly improving trajectory,” said
Gennadiy Goldberg, a U.S. strategist at TD Securities Inc. in
New York who forecast the number of applications would drop to
365,000. “We’re definitely getting fewer firings, but hirings
are picking up very gradually, and that’s why you’re only
seeing gradual improvement in the labor market.”

Stock Futures

Stock-index futures were little changed after the report.
The contract on the Standard & Poor’s 500 Index maturing in
December rose less than 1 percent to 1,407.50 at 8:40 a.m. in
New York. The yield on the benchmark 10-year Treasury note rose
to 1.72 percent from 1.69 percent late yesterday.

In a separate report, the ADP Research Institute said today
companies expanded payrolls in October by the most in eight
months, an indication the U.S. labor market was on the upswing
at the start of the fourth quarter. The 158,000
increase followed a revised 114,000 gain in September, according
to Roseland, New Jersey-based ADP.

Estimates for first-time jobless claims ranged from 355,000
to 380,000 in the Bloomberg survey of 49 economists. The Labor
Department revised the prior week’s figures up from an initially
reported 370,000.

Worker Productivity

The productivity of U.S. workers rose more than projected
in the third quarter as companies wrung out more output from
their employees in order to keep a lid on costs, another Labor
Department report today showed. The measure of employee output
per hour climbed at a 1.9 percent annual rate, the same as the
prior quarter, and labor expenses unexpectedly dropped at a 0.1
percent pace.

A Labor Department official today said last week’s claims
data had yet to be influenced by the fallout from Hurricane
Sandy. If there was to be any impact it will show up in the next
couple of weeks, the spokesman said.

The four-week moving average, a less-volatile measure, fell
to 367,250 from 368,750.

The number of people continuing to collect jobless benefits
rose by 4,000 to 3.26 million in the week ended Oct. 20. The
continuing claims figure does not include the number of workers
receiving extended benefits under federal programs.

Extended Benefits

Those who’ve used up their traditional benefits and are now
collecting emergency and extended payments increased by about
47,000 to 2.13 million in the week ended Oct. 13.

The unemployment rate among people eligible for benefits
held at 2.5 percent in the week ended Oct. 20. Twenty-three
states and territories reported an increase in claims, while 30
reported a decrease.

Last month’s projected payroll gain would indicate the
labor market has little momentum heading into 2013. Employment
climbed by 146,000 a month on average in the third quarter.

Adding to the lot of unemployed Americans, EBay Inc., the
world’s largest online marketplace, said Oct. 29 it will cut 325
jobs to improve efficiency. Newell Rubbermaid Inc., the maker of
Sharpie pens and Calphalon cookware, said Oct. 26 it plans to
cut 10 percent of its jobs in the next two-and-a-half years. The
Atlanta-based company had 19,900 employees as of December.

Spending Cuts

Cuts in public spending are also hurting employment at
government contractors, showing what could happen in the event
the fiscal cliff materializes. Oshkosh Corp., the Wisconsin-based company that makes commercial trucks and supplies blast-resistant trucks to the U.S. Army and Marine Corps, said Oct. 26
it would cut 450 jobs in January due to lower demand from the
Defense Department.

Rockwell Collins Inc. said it plans to cut 1,250 employees,
or about 6 percent of its workforce, in the next year as the
aerospace manufacturer’s defense revenue falls amid curtailed
U.S. military spending.